iii. promoting business and technology incubation for ... - Escap
iii. promoting business and technology incubation for ... - Escap
iii. promoting business and technology incubation for ... - Escap
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
(v)<br />
International <strong>business</strong> incubators (IBI)<br />
In 1996, with the help of experts from the United Nations, MOST selected eight better per<strong>for</strong>med<br />
incubators from Beijing, Xi’an, Suzhou, Shanghai, Wuhan, Tianjin, Chengdu <strong>and</strong> Chongqing as pilot IBIs. IBIs<br />
are designed to assist both international <strong>and</strong> Chinese start-up firms enter the Chinese <strong>and</strong> international markets<br />
respectively, <strong>and</strong> to promote cooperation between the two. While the traditional incubator serves only national<br />
ventures, the IBI is intended to facilitate small companies with significant technical products but with limited<br />
resources to enter a complex market such as China. The international operation of Chinese <strong>business</strong> incubators is<br />
a responsive measure to enterprises wishing to develop international operation. IBIs have set good examples <strong>and</strong><br />
are accelerating the cooperation between <strong>business</strong> <strong>incubation</strong> in China <strong>and</strong> internationally.<br />
(vi)<br />
Incubators set up by state-owned enterprises (SOE incubators)<br />
Setting up incubators within SOE is an important practice in reconstructing traditional industries<br />
by utilizing high <strong>technology</strong>, <strong>and</strong> this infuses new vigour into China’s <strong>incubation</strong> programme. Relying on the<br />
existing resources of SOEs, incubators can promote the transfer of <strong>technology</strong> achievements, speed up the<br />
reconstruction of traditional industries by utilizing high <strong>technology</strong>, nurture the new <strong>technology</strong> <strong>and</strong> new products,<br />
cultivate new sources of economic growth so as to reconstruct <strong>and</strong> upgrade the <strong>business</strong> operation of the SOEs.<br />
Beijing Gas Engine Manufacturing, new <strong>and</strong> high-tech incubator, is the first incubator set up by<br />
SOEs in China. The Gas Engine Group is the largest manufacturer of combustion engines in China. In recent<br />
years, the products were over produced <strong>and</strong> outdated, efficiency was low <strong>and</strong> dem<strong>and</strong> was falling. Other<br />
problems include low efficiency of management, staff redundancy <strong>and</strong> lacking of capital. With supports from<br />
Torch Program <strong>and</strong> Beijing Municipal Government, Beijing Gas Engine Group, Beijing Polytechnic University<br />
<strong>and</strong> Beijing Hi-tech Business Incubator jointly established the said Incubator in August 1999. Taking the TBI<br />
model <strong>and</strong> selecting the promising manufacturing high-tech projects <strong>and</strong> enterprises as tenants, the incubator<br />
provides the services needed <strong>for</strong> trans<strong>for</strong>mation of scientific achievements <strong>and</strong> <strong>technology</strong> start-ups <strong>and</strong> financing,<br />
training <strong>and</strong> marketing services as well. Over two years of practice, the incubator has got very good per<strong>for</strong>mance<br />
with 20 enterprises nurtured, tenant sales over Y 50,000,000, more than 400 jobs created. One <strong>business</strong> among<br />
the 20 was even created by nine workers who resigned from Beijing Gas Engine Group. The Incubator has<br />
shown a bright future.<br />
Until now, more than ten SOE incubators have come into being, concentrated mostly in Beijing.<br />
(vii)<br />
General purpose <strong>business</strong> incubators<br />
While the above incubators are predominantly <strong>for</strong> commercializing innovations, the incubator to<br />
address other social <strong>and</strong> economic issues has also been explored. Now, an incubator in Tianjin focusing on<br />
enterprise creation by laid-off female factory workers, <strong>and</strong> sponsored by UNDP, Australian Agency <strong>for</strong> International<br />
Development (AusAID) <strong>and</strong> the Tianjin Women’s Federation, is presently in the implementation stages <strong>and</strong> has<br />
been operating well since its official stating in October 2000. The All-China Women’s Federation (ACWF) is<br />
expecting to promote the model in the whole country.<br />
D. Models <strong>and</strong> trend <strong>for</strong> China’s <strong>business</strong> <strong>incubation</strong> programme<br />
1. Two institutional models<br />
From the end of 1970’s to the present, China has been undergoing profound social changes from<br />
the planned-economy system to a socialist market-economy system, <strong>and</strong> a series of new type social<br />
organizations continue to arise. Whether viewed from the st<strong>and</strong>point of their <strong>for</strong>m or functionality, the <strong>for</strong>mer<br />
planned-economy system did not have these kinds of new organizations, <strong>and</strong> as such there is no way to use the<br />
planned-economy system’s means of classification to distinguish <strong>and</strong> address these new organizations. While the<br />
new market system is in the process of development, two institutional models have been chosen <strong>for</strong> China’s<br />
<strong>business</strong> incubators. One model is a non-profit model, which is <strong>for</strong> public good, <strong>and</strong> the other is the commercial<br />
<strong>for</strong>-profit <strong>business</strong> model. Of these two models, the non-profit currently is in the predominant position.<br />
88